Financial services provider Mastercard has announced a partnership with artificial intelligence (AI) firm Feedzai to enhance its ability to detect and prevent fraud associated with cryptocurrency exchanges.
As part of this collaboration, Feedzai’s software will be integrated directly with Mastercard’s CipherTrace Armada platform, a banking tool designed to monitor transactions from thousands of cryptocurrency exchanges for fraudulent and suspicious activities.
Feedzai’s AI-driven software is capable of swiftly identifying and blocking suspicious transactions within “nanoseconds.” According to data from Feedzai, nearly 40% of fraudulent transactions involve transfers from bank accounts to cryptocurrency exchanges.
Nuno Sebastio, CEO and co-founder of Feedzai, highlighted that this technology would not only enhance fraud detection but also help identify potential money laundering activities and mule accounts, ultimately protecting unsuspecting consumers.
Sebastio also pointed out that many banks mistakenly block transactions involving well-regulated entities within the crypto space while allowing others to pass unnoticed.
This initiative follows Mastercard’s previous introduction of an AI-powered tool in July aimed at helping banks combat fraud and payment scams involving real-time payments.
Mastercard has been actively involved in the Web3 and crypto space, launching crypto-based Mastercards in partnership with major crypto exchanges like Nexo and Binance. Additionally, the company has participated in trials involving the use of blockchain technology to wrap central bank digital currencies (CBDCs), collaborating with organizations such as the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre CBDC, along with Cuscal and Mintable, to explore the possibilities of CBDCs on blockchains.